Day Trading: Halal or Haram?
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- Опубліковано 16 вер 2024
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Thanks for watching our video: Day Trading: Halal or Haram?
In this video we covered:
Day Trading: Halal or Haram?
Is Day Trading Halal or Haram?
Does Day Trading include any sharia violations?
How can one Day Trade in a halal manner?
Is Margin Trading Halal?
Does Day Trading violate the Islamic rule to not sell what you do not have?
How can people Day Trade if it takes 2-3 days for a Trade to settle?
Can you make a living day trading?
These are perhaps the most common questions I receive from viewers and in this video, I attempt to answer them thoroughly. Day traders look for stocks that move in a predictable way, which are usually traded in one day and are not held overnight. Many scholars say day trading is halal - but there are differing views and it’s an ongoing debate. So let's start the discussion...
Let me know what you think in the comments!
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DISCLAIMER
Anything you hear in this video is an opinion. It is not personalized financial advice. Make sure you do your own due diligence before making any investment decisions.
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In basic is it Halal or haram brother
Knowledgeable People Please Respond.... In certain regions of India, a trend has emerged where groups encourage people to invest in trading with a minimum investment of 1 lakh rupees, promising a fixed 10% return each month regardless of profits or losses. Although the group claims to invest in halal stocks, the process lacks transparency, leaving investors uncertain about how the promised returns are generated. The question arises: can this type of trading be considered halal, even though it involves investing in halal stocks?
May Allah save you from all haram and grant you baraka in your life. This video clarified me a lot. Thank you
Im not muslim but i find many things from religion very good to follow even if i dont call me a muslim
Hi Letsbefree
Are you interested to know more about this beautiful religion ?
I will tell you about soul
@@aboabdulla18 yeah i would like to read the koran in my own language someday :) but i also want to read the bible :)
@@letsbefreeletsbefree7183 you can read both, and it's quran👍
i respect you and hope you be a muslim one day, as many muslims don’t know about islam, you have a good heart
MashAllah, I like how you make explanation videos about tradings based on islamic laws. Stay motivated and may Allah forgive you for your mistakes.
Salamu Alaykum Omer abi! Sizden Tradingla alakalil biseyler sorabilirmiyim? Australiyadan Ahmet
@@akilic958 buyur canim
Selamun aleyküm, İslamın uygun hisselerin listesi yok mu, bu konuda yardımcı olursanız sevinirim
May Allah Grant barakah in your wealth and efforts
Thank you brother, to you as well.
@@practicalislamicfinance Sir, In india during day trading brokers allow us to sell the stock first and when day is about to come to an end you must buy it ... During sell money from demat account also deducted... So I want to ask is it permissible to sell the stock and then buy??? Please reply
Alhumdulillah brother..I was margin trading ..thanks to you I'm closing my trading account today..m emotional now..par allah have mercy on me .. Ramadan Kareem mubarak ❤️
Can i do intraday trade with leverages?? Pls explain bro
@@jumahcontracting6946 levrage trade is haram in islam because it involves interest
Dont close your account bro just try another types of trading which are halal like forex trading etc
@@letsunbox8977 i’m sorry brother, but forex trading is indeed haram 😔 all peace and love buddy ✌️
@@luqmanhisham6093 assalamualaikum brother, my question is it halal to trading crypto because I make a lot of research and somehow there's lot of that say it's halal or permissable...and also they say forex also halal now because the things is haram when it's written in holy Qur'an and what was mentioned by Holy Qur'an is gambling and riba they say...
Leverage is not a lone, if it was, then if I lost my whole account I should pay the loan back, but no one does. The second thing is, brokers do not benefit because of the loan (as you name it) they benefit from the spread between two currencies. Don't expect that they will allow you to use the platform for nothing. Just like if you want to rent soccer hole, you have to pay for it to be able to play soccer. We pay to be able to trade, not because of the leverage.
brother i think you are talking about forex, their is a sep video on that. the haram part is the riba in leverage becareful
Jazakallahu khairan, I finally found a video which explains logically and clears my doubts on minimum amount of share holding time
Day trading halal or haram? Mention holding time
Salaam brother, is there a chance of us seeing what companies you have invested in your portfolio?
A weekly update on what you bought and sold is another suggestion I would love too see inshaaAllah
Rakaan posted this in the video description: m1.finance/tDYnHCZW63WY
Brother Salam o alaikom wa rahmatullah
Thank you so much for taking your precious time explaining day trading to us! Including myself, there ton of other brothers who exactly want to know what you have just made available.
Keep up the good work my dear brother and may Allah SWT reward you for explaining it to us.
My pleasure!
@@practicalislamicfinance Salaam brother. Can you please put timestamps if possible???
Salam alikom...
Its haram or halal
Thank you brother. You have the most clear answers I've always been looking for . MashAllah
Right ✅
Common stock and live stock 😂
Now i get it, took me a while to understand as a noob
haahahahahaha
Salaamualekum my brother can we buy or invest on bitcoin.
@@museowe6532 yes you can
@@ehsankhorasani_ brother i have a question which is bothering me alot
For ex: in binance i buy dogecoin (in spot trading) for a cheap price and after hours/ a day the price increases and then i sell it for profit , then after a day i re-buy it again
So is this halal? Yes or no only plz
Amazing stuff! I wish this was available to me a few months or even years ago, but either way, I am happy I stumbled upon your channel now 😂
Thank you so much, and Walaikum Assalam 😁
Just watched the whole vid and read all the comments. Thanks Rakaan for the valuable input.
helal or haram?
From investopedia :"As an example of how settlement dates work, let's say that an investor buys shares of Amazon (AMZN) on Monday, Jan. 28, 2019. The broker will debit the investor's account for the total cost of the order immediately after its filled, but the status as a shareholder of Amazon will not be settled in the company's record books for the investor until Wednesday, Jan. 30. At that time, the investor would become a shareholder of record."
Don't trade Amazon it is haram
Use Zoya app to distinguish what stocks is haram or halal! Good luck
@@Dhabaryare thank you very much brother may Allah bless you
It eas just an example from investopedia my self i never trade stocks as many scholars sayed they are not for trading but only holding
I only trade platinum and palladinum Etf s
Robinhood and many other trading platforms do not charge interest for trading with unsettled fund
Dude mashallah man!!! I love your video's Keep it up!!!
I took to comments several times to criticize but every time you answered my critisim already. Good video. Risk and rewards is the key.
I bought the course of Zed Monopoly, an Irish guy. I studied it and I was wondering about all these questions. I see most of them getting answered on your channel. Thank you.
Which course?
Guys i didnt understand well so is it haram or halal to day trade
How did u do so far? I wanted to buy the course too
Thanks a ton for this well researched explanation. Helps to focus my trading more on the basis of Islamic morality and guidance, and reject trading methods that are not in line with the deen. Cheers and salaam to you.
Sir, In india during day trading brokers allow us to sell the stock first and when day is about to come to an end you must buy it ... During sell money from demat account also deducted... So I want to ask is it permissible to sell the stock and then buy??? Please reply
Brother, what is the marketplace for this day trading? Is it on forex ?
@@sayyedahteram8559 thats short selling and is haram. Because u sell what dont own + u pay interest on those shares u borrowed
If we do trading with cash account and all analysis, neither scalping nor riba is included is forex permissible then ???
This is a very informative video and clears my confusion on the islamic perspective of cash and margin accounts. May Allah SWT bless you and us with his guidance throughout.
Does the same thing applies to day trading of cryptocurrencies
Broker here in HK. Cash is available as soon as shares sold and we dont have to buy on margin. That's ok then.
the question was simple, the answer should have just been straight yes or no. if you did need to say anything extra it should have to been
'To get to a level of being able to make living off day trading you must learn and practise. dont quite your job until you are comfortable with the way you trade. until you fully understand your risk management. finally make a plan.'
If swing trading is halal, then there's no reason for day trading to be Haram. It's the same thing on a different time frame. Both requires technical analysis and money management. Without the two, you can win a lot or lose it all in both.
@@MosestheMuslim bro yes I understand and agree with you. I just don't understand why poeple make pointless videos and go off topic.
Great video, with best knowledge and very well explained, now I have no confusion about halal and haram thank you so much
Salam,
What is the market place for this day trading? Is day reading being discussed here possible on forex ? If yes , how ? Will it be halal?
You know the practical aspects very well , so your evidences on physical & digiral possession is great.
Habibi warren Buffett isn't a trader. He is an investor. These are two different things....
subhanallah, very important video... jazakallah khairan
Assalamualaikum brother.
I have a few questions.
1. Can I apply day trading to crypto?
2. How many days or the shortest period should I consider holding my trade position so it's compliance with sharia law.
Assalamu alaykum brother, I have the same question. Did you find out if crypto day time trading is acceptable in Islam?
@@digitalconsultinguz4360 did you get answer for it?
Same question?
Hello is short term trading halal can I buy today and sell in a week for profit?
If you're living in those country where crypto is legal to trade then you can do trade intraday in same ways according to this video.
My Allah bless this brother and ascend home to The Firdous. Awesome explanation
This is great. Always wondered if there was any issue day trading crypto. Margin trading obvs interest involved so not allowed
Thank you for the explanation. I was looking for this. Jazaka'Allahu khayran.
Forex Day Trading using Auto Trading is giving great results...!! Alhumdulilah.
Great message!!
Is forex Auto trading halal ??
Thanks a lot for lesson, it is short but to the point, barakallah 😊
Day trading is halal. Many scholars give fatwa without even knowing how it works or having any experience in the stock market. How is it gambling when you have a stop loss and know how much you will lose at most?
you convinced me bro, thanks.
May Allah reward you brother!
I was really concern about validity of making day trades but you made it very clear.
With due respect, since it's a very crucial matter, I was just wondering if you have Islamic credintials to make such comments?
So key take away from this is you can't re-invest the money you make from a sale until the amount has settled, but you can buy and then sell a stock on the same day.
Brother, what you don't understand, is the power of compunding.... Day trading IS profitable.
Day trading is speculating on the price to move in the way you predict it to. Speculation is betting.
What about the speculation aspect ?
Is speculation based on TECHNICAL ANALYSIS halal ?
every trade or investment is speculation. the real concern is volatility and managing risk
the settle time changed to next day settling, so makes day trading easy
Alhamdulillah you covered everything
thank you
What you mean cash to settle..... if you sell as soon as the sell is executed sometime it takes only minutes or depend on where you put your limit sell it will be executed right away and you will have the money available in your account
JAZAKALLAH brother. May ALLAH bless you ❤
Nice efforts
May Allah bless you.
jazak Allah khair brother, the video was really helpful
13:45 for quick answer
Hero
Thanks for that!
I suggest you start a playlist of who to start trading stocks from A to Z, if you say it is Halal. Because as I know stocks also uses leverage. Will be waiting for your response brother.@parctical Islamic Finance
MashaAllah Very nice presentation very helpful thank you so much
Video starts at 4:00
but what if the broker does not have commission costs? What is your opinion on using leverage? because the broker doesn't really benefit on the trade except on spreads but spreads is calculated in the trade regardless if you use leverage or not. And the loan actually benefits the two parties because some assets you can't trade because they are just too expensive and your broker wants you to trade that is how they make money.
Alhamdulillah Brother.. You Explain Very Well ❤️👌.
1. Is Day Trading/Buying/Investing in coins like BNB where in the company-Binance- which owns BNB deals indulges in Crypto Loans and giving and taking interests?
2. Could you make a video on DeFi and specific COINS which are Halal or Haram based on the Tokenomics or source of income or idea behind the project.
We are using trading 212, the moment we sell the share money is immediately available to buy other shares .is this a loan extended by the broker or it's a cash money? quite confused!
Check the settlement time for your broker
@@practicalislamicfinance salam alikom Rakaan. Great work. I use Trading 212 too and to be honest couldn't really understand how it works. All the buying/selling happen immediately and you can use the money mtiple times as you wish. However their T&Cs explain settlement takes t+2 or t+3.. also mentions they may settle transactions on a "delivery versus payment basis" but I have jo idea what it means.
I use their ISA invest account (NON CFD account, non margin). All trades happen (over the counter).. is this halal? Is this similar to what you describe in the video or completely different?
If you could shed some light on this I would be grateful as a lot of us in UK/EU use this app and other 0 commission apps.
Thanks
Motaz
@@motazinenglish8190 would love an answer on this, many of us are in a similar position, if we have no intention of cashing the money out once we sell a share it is available to us immediately so we can re invest as cashing it out and then putting it back in to invest does not make sense to me
This is a good question. I would like to provide an answer to this based on my research.
Firstly Trading212 is a Cash Account NOT a Margin Account. So as per this video it falls into the first category which Rakaan explained. It does not provide a Margin or any Interest type payment for you to buy stocks on sale of your stock.
The way you get your money instantly on sale of your stocks is by a process called Delivery versus payment. The process involves the simultaneous delivery of all documents necessary to give effect to a transfer of securities in exchange for the receipt of the stipulated payment amount.
So before the actual settlement takes places which is T+2 or T+3, you get your money. It is like you giving your car documents to the buyer of the car and taking all the money from the seller but telling the seller you can collect the car in T+2 or T+3 days. In this was the buyer is happy that he got the full money and the seller has the car documents to prove that the car is his now.
I don't see anything wrong in this type of transaction.
Rest Allah knows best.
In india, same here in zerodha app... money is available immediately after sale... eventhough actual settlement take pkace after t+2 days. But the brocker doesnt charge interest for this amount available... is it haram.?
What happens if I don't wait in a cash account for the money to be there, and I buy another stock? Am I borrowing money which has interest or no interest will be accrued, or does the account show I'm getting the funds soon so I can use it, resulting in no interest? I'm basically use my pending money, money that is on its way to me to buy more stock to sell again. Please help me to see why this is wrong.
(I do agree any interest of any kind/amount is wrong.)
When I close a sell trade, the cash is immediately credited into my account. I'm able to use that cash straight away to either buy more stocks or withdraw cash. I'm in the UK
What trading platform do you use?
Which trading plate form
Different psychological levels while scaling up. The more you have, the less you have to make.
Another one reason for the prohibition of Day trading is it is considered as speculation. What do think about that?
What about Volume Trading
Does this mean there is no margin given for CNC (cash and carry) trades ?? (Specific to Indian traders) Found this on the margin policy page of zerodha
At Zerodha we provide no leverage when you are executing delivery trades which mean that you if you want to buy Rs 1lk of stock as CNC, you will need this Rs 1lk in your trading account and similarly if you want to sell Rs 1lk of shares with product type as CNC, you will need these shares in your demat account mapped to your trading account.
I didn’t know that your cash has to settle before you can use it again 😢😢😢
So trade twice a week or so. Moderation is great
Mashallah Will done barak allah feaak yiy explain very will May Allah reward you
Your channel is the best. Thanks for the efforts and hard work. Jazakallahu Khairan
Wayyakum Nazim thank you!
Hi currently i m practising daytrading. I do make till now about 200 dollars a day by trading in currency. I analyse the currency for weeks and start buying and then sell. But of course i never no for sure if it wil go up. I do buy based on analysing previous months weeks days etc. A big part is based on trust worldwide of how a currency will develope. But still someyimes it feels like gambling and i dont know if i want to do it anymore. Can someone advise me...
Thank you, I just switched from Robinhood Margin account which is default to Robinhood cash account. This will prevent me from using the unsettled amount before the processing days. Margin account by default violates the halal requirements
Does day trading of cryptocurrency is halaal ..?
Salam bro. Thanks for all you do.
My question is: if it's a crypto currency like BTC instead of stock, is it halal to day trade it (since the funds settles same day)?
No issue if spot trading
Jazakallah ❤️ ALLAHU AKBAR
Rightly Explained Bro. God Bless.
Very clear explanation
Kardeşim ben türküm ve videodaki dili anlamıyorum bana yorumlarda anlatır MSI’ın mısın
Awesome video! Thank you so very much for the info. I have a Robinhood Gold account. Robinhood Instant and Gold accounts are Margin Accounts. Having said that, you have the option of turning off Margin Investment. Also, Robinhood states that deposits are made available instantaneously. Does this mean that we do not have to wait 3 trading days to buy again after selling?
Hi Hassan, did you have a response to your question?
JazakAllahu khair Brother 👍
Assalamualaikum..great video . questions what about after selling stock we have instant settlement on Robinhood can we use that money which we invested not the profit to buy another stock?? With the original money ... please let me know
Hope he replies soon, am in the same boat
If you sell stocks it takes two days for your funds to settle, in Robinhood you have instant buying power because it's a margin account and they are letting you use their money wile your money settles even though their not giving you anything extra.
@@grizzlyman329 So what's the status in this case? Halal or haram?
Asselamualikum. Great explanation. But why do I have to depend on cash that I just made profit to buy another stock. Instead, can't I use the remaining cash in my account that I didn't use for my initial trade to make another purchase?
@@peledood999 Sure you can. Except sometimes we don't have spare cash in our account.
without doing fundamental analysis , technical analysis and proper risk management whatever you do (Investment, Intraday, Future & Option) all are gambling. Without doing analysis, If you are investing in a company and expecting, that company will grow and share value will increase in future that is also one type of long-term gambling. In short , Investing without analysis is gambling, trading with analysis is Business. In share market, your analysis skill is your capital, not your money. If any investment giving profit to you without doing analysis , please understand that is purely luck, ie. Gambling.This is my own opinion. Think yourself
Thanks for the video!
While talking about the margin account, you mention that there are only two types of loans in Islam, charitable and Ribawi loans. And then you make the assertion that the only type of loan that the lender is giving is a Ribawi loan, since there is some benefit that the lender is getting out of it. You mention interest as only one possible benefit, but not the only one. But you didn't specify what other benefits the lender is getting from lendingapart from interest. Could you elaborate on that?
in Wealthsimple I believe they allow you to use the cash proceeds after selling a stock on the same day towards buying more shares immediately and dont expect anything in return. Is this true?
brother with all deu respect those people you nemed are not day trading. they are investor longterm but if youre a day trader like WWA,RCV,ICT ext.... they make each day around 20 percent.
Thanks for the video, but I am not sure the point about re-buying stocks on the same day was made clear. Lets say:
1) I fund my Trading 212 account with £1000. I buy 2 shares of XYZ at £500 each. After an hour the share price increases to £510, so I sell both shares at £1020, hence gaining £20 in profit.
2) Two hours after, I buy a share of ZYX worth £1020, then sell it an hour after at £1050, hence gaining £30 profit from that sale.
3) Immediately after that, I decide I have made a good profit on that day and withdraw all my money (ie the £1050). Given that Trading 212 is commission free, I get the £1050 in my bank account.
Where is the riba/interest/haram here? Could you please clarify?
JazakaAllah khair! :)
I believe they won't transfer the money to your account until all the trades are settled.
@@tru35kill but if they do transfer the amount (meaning I can withdraw it), does that mean is halal?
@@salehfahd they wouldn't do that though because the loan is only within your account. They wouldn't pay out the loan to your bank account
@@tru35kill Are you sure that is the case with Trading 212?
@@salehfahd I havent tried withdrawing from my account yet but I heard it takes a few days. They never transfer instantly.
Obviously, you do not know much about professional day traders. 20% - 30% return on annual basis is next to nothing. Hedge funds are managed different from how day traders manage trading.
Agreed, although I would say he's a good brother all around and well versed about investing, unfortunately very ill-informed about day trading.
Thank you so much for clearing this matter to us. May god reward you
Same to you, I'm glad it was helpful!
❤
TOTALLY Disagree with the Thesis, that Daytrading is not working out.
To understand what DayTrading really is, you cannot compare with a Hedge Fund Manager or a Warren Buffet. If you do on spot 4 Billion and then gains of 10-20% that's something different.
If you are a DayTrader you take Leverage and try to maximize a little amount to get huge gains in opportunity.
From Islamic Point of view it's totally different. There I mainly agree with you. But using a proper Risk Management & working on your own Ego/Psychology will help you here to manage your risk.
Anyway thanks for your opinion and that video. May Allah grant you Jannatul Firdauz.
Thank you. Regarding your risk argument I think the statistics about day trading stand on their own
Baaraka Allahu fiik
JAZAKOM ALLAH KAYRAN for your videos
My remark is about precious metals etfs which are shariah compliant
The settlement is t+2 in general and if they are halal (hand to hand) how it is permissible to trade them many times per day and even if we wait for the settlement like stocks to buy again how they are shariah compliant ?
Just because Margin account allows you to short sell and has riba, doesn't mean you have to use it. I day trade on a margin account but I never short sell or use the money I don't have. Also, I'm not sure what you mean by recieving money in 2-3 days because I always get my money the second I click sell, just like most brokers do these days. Great indepth video though.
Lol, trading with margin itself is Haram🤷🏽♂️😏
@@abbamusa6607 hmm...I'm not so sure about that. That's like saying you can't eat halal food on a dinner table where there's pork. If I can confirm your statement, I will try to find an alternative.
I have a cash account on T212, when I sell shares the money is back in my t212 account within 1 minute & the shares i sold are gone i no longer own them so can i then use that money again as it is with me
Asalam alaykum. Thank you so much for this wonderful and informative vide. Can you please tell us about your credentials?
6:48 what does "sale to settle" really means?
when i sell xyz stock for a $1000,then i had cash on that platform $1000
and I'm not allowed to buy stock unless i withdraw to my local bank and i buy stock and paid it using my local bank???
Shukran thank you
Assalamualaikum Is cryptocurrency halal or haraam .If i buy a coin and sell the same coin on the same day as the coin prize has raised is it permissible? please answer this question sir.
It's halal
Salam, what are your thoughts on Prosperitrade they only do halal stocks. Prosperitrade they did DD on EXAS with an oncologist as a special guest.
Thanks for such Valuable Information ...
Let say for example that traditional daily trading do. Abu goes to Market A to buy a rock amount $100 and later he goes to market B and sold the rock amount $120 by cash. So he got profit $20, apply the same procees to daily trading online. This is permissable in Islam, right ? Right!
Clear speech and well explained مَا شَاءَ ٱللَّهُ
Can u please explain to me what he said is day trading halal or haram my English is not good
13:18 - I still have some confusion - I can see the transaction in a completely different way where I transferred the ownership of my stock to the broker and in return they credit amount in my account. Whether they are acting as a middle man or selling it to another member its in their hand. Rest is the business process time for making the amount available to cash out. In any business you buy/sell the inventory on credit.
Similarly, if this is the case then using credit card will be termed as haram too as they also give us loan and definitely not as Qarz e Hasanat.
Apologies! If it is very simple and I am not getting it.
Bro credit card is haram because when we make a credit card we already agree for payment of interest on the papers etc if due date is gone on a transaction payment, we are humans and can never guarantee that we will always pay on time
Salam. Dear the explanation you had given is logical and understandable but my question is about your Islamic qualification level. I mean you are telling us after listening from some scholar (mufti) or you yourself is a Islamic scholar (mufti)? If you are not a scholar then please refer me to the Islamic scholar who had told you that intraday trading is halal. Because I want to discuss personally with some scholar who is saying intraday is halal. Here in Pakistan I had not found anyone who allows intraday and I was unable to understand why not allowed. Plzzzzzz reply.
so i am not allowed to trade with the proccedes or the entire amount that I invested in that trade like am I allowed to trade with the 1000$ but not the 20$?
Jazakallah khair
isn't the problem of day trading that it is considered gambling ?
Trading is considered gambling anyone that wants to be successful in trading should have a good broker who helps trade for the person to be successful and profitable
Trading with Mr Donald and his strategies is awesome, he has helped me to recover some capital I lost in the hands of incompetent Brokers/Account Managers but thanks to Almighty god that at last I came in contact with Mr Donald via his mail that was shared on the net by good traders, since then I have neve lost any trade you can reach him...